Gate News message, April 17 — Democratic senators are aggressively questioning the Trump administration’s oversight of a major centralized exchange regarding anti-money laundering (AML) controls, amid reports that over $1.7 billion in cryptocurrency flowed through the platform to Iran-linked wallets. The scrutiny comes as the administration faces criticism for a separate settlement with a Turkish state-owned bank accused of helping Iran evade sanctions.
On Friday, Senator Richard Blumenthal (D-Conn.) sent urgent letters to the Department of Justice (DOJ) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) demanding answers about two independent monitors assigned to the exchange following a 2023 settlement. The company paid $4.3 billion in fines for failing to maintain proper AML controls. Blumenthal alleged that the exchange took two months to respond to law enforcement inquiries about terrorist financing and five months to remove a suspicious vendor. Internal data reportedly showed risky accounts labeled with “Don’t block. Internal accounts.” The senator is also demanding information on whether the exchange weakened its compliance policies since 2025, particularly regarding accounts tied to Iran.
Separately, Senators Blumenthal, Chuck Schumer, and Adam Schiff are questioning the DOJ’s decision to grant a deferred prosecution agreement to Turkiye Halk Bankasi (Halkbank), a Turkish state-owned bank accused of helping Iran access a $20 billion slush fund. Under the agreement, the bank will pay zero fines, admit no wrongdoing, and provide no compensation to U.S. victims of Iranian terrorism. The senators questioned whether President Trump pressured the DOJ to protect the bank, noting that Turkish President Recep Tayyip Erdogan reportedly assured his circle after a September 2025 White House visit that “the Halkbank problem is over for us.” Senator Ron Wyden called the decision “nothing short of rank incompetence” given the administration’s concurrent military engagement with Iran.
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